Seller Escrow Explained: What to Expect

Escrow is the 30–45 day window between accepted offer and closing. For sellers, understanding what's happening behind the scenes can reduce stress and prevent costly surprises.

By Shasta Greene · April 8, 2026 · 7 min read

Many sellers describe escrow as a period of 'hurry up and wait' — and that's partly true. But beneath the surface, a lot is happening: documents are being signed, inspections are being conducted, lenders are verifying buyer financials, and title is being cleared. Understanding the seller's role in each phase is essential.

What Is Escrow?

Escrow is a neutral third-party account and process managed by an escrow officer (often at a title company). Their job is to hold funds, collect documents, and ensure all conditions of the purchase agreement are met before closing. In California, escrow typically runs 30–45 days.

Seller Disclosures: Your Legal Obligation

California sellers are legally required to disclose all known material facts about the property. This includes the Transfer Disclosure Statement (TDS), Seller Property Questionnaire (SPQ), and any applicable supplemental forms. Disclose everything — intentional non-disclosure is the source of most post-closing litigation.

Inspections and Repair Requests

The buyer will conduct inspections — typically within 17 days. After receiving the inspection report, they may submit a Request for Repair (RR) or a Request for Credit in Lieu of Repair. Your options: fix the items, offer a credit at closing, or decline. Your agent will help you evaluate which approach protects your net proceeds and keeps the deal alive.

The Appraisal

If the buyer is using a mortgage, the lender requires an appraisal. The appraiser verifies the home is worth the purchase price. If the appraisal comes in below the agreed price, the lender won't fund the full amount — and you'll need to renegotiate, or the buyer must cover the gap in cash.

Final Walkthrough and Signing

The buyer will do a final walkthrough 1–5 days before close to confirm the property's condition matches what they agreed to buy. Then both parties sign final closing documents — sellers typically sign 1–3 days before the official close date. Proceeds are wired to your account on closing day.

Shasta Greene is an Orange County, California real estate advisor and REALTOR®, DRE #02174153.